Forex-Metal Daily Analysis -22/02/2011

Instability in the Middle East and Africa regions concerns the market.

Asian and European trading sessions:
Euro: EUR/USD pair started trading day with maximums of $1.3715. The pair traded around the levels of $1.3710 after the release of the strong Euro-zone fundamentals. In particular, the German IFO – Business climate index turned out to be at the level of 111.2 amid expectations of 110.3.
Minimums were reached at the $1,3645 level.
US Dollar: Save-heaven assets received substantial support on Monday as a result of the Middle East and African instability. In particular, the problems in Libya raise world concerns. According to the released information, the civil war can start in the country. Demonstrations are taking place in Tunisia, Bahrain, Djibouti, Morocco and Iran.
British Pound: The GBP/USD pair traded in the range of $1.6245 – $1.6200.
Japanese Yen: Yen was supported as a save-heaven currency.
Oil: Instability at the Middle East region reinforced concerns regarding possible interruptions of the oil supply. Oil rate stabilized around the $91.47 level per barrel. Maximums were reached at the $92.00 mark.
Gold: Gold is trading above the maximum level of $1400 price per ounce. According to some experts’ opinion, the growth of gold might continue, though the “yellow metal” is over-bought.

American trading session:
US Dollar: US financial markets were closed today due to the President’s Day celebration.


Technical analysis for 22/02

The pair was unable to stay above Moving Average (500) and started to decline. The pair is aiming to 1.35984. If this level is broken the pair will decline to 1.34882.
Resistance: 1.37486, 1.38554, 1.39600
Support: 1.35984, 1.34882, 1.33143
The pair has risen to 1.62050 and rolling back to 1.61144.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
The pair is aiming to 0.95125. If this level is broken the pair will rise to 0.95904.
Resistance: 0.95125, 0.96574, 0.98114
Support: 0.93435, 0.91658, 0.89710
If the pair stays below resistance 83.065 the pair will decline to 82.219.
Resistance: 83.933, 84.866, 86.861
Support: 83.065, 82.219, 81.399
If the pair stays below 1.00907 the pair will decline to 0.00067.
Resistance: 1.00907, 1.01744, 1.02705
Support: 1.00067, 0.99207, 0.98436